KARACHI: Employees’ unions of the Pakistan Telecommunications Co Ltd have called off their two-week-old strike after the company’s management and workers reached an understanding on Tuesday.

PTCL management has agreed to provide all non-management employees a special allowance equal to 35 per cent of their current basic pay as an interim relief effective from July 1. A committee has also been constituted comprising representatives of both the workers and management to work out and review pay allowances and formulate recommendations within 15 days for revision of pay scales keeping in view the changes in pay scales by the government after 2005 to date. The recommendations will be presented to the board of directors for approval. The special allowance of 35 per cent will be adjusted in the new pay structure.

A meeting between the PTCL management and representatives of Muttahida Workers Alliance was held at the PTCL headquarters in Islamabad and a memorandum of understanding was signed. PTCL’s Senior Executive Vice President HR Ismail S Taha and EVP Finance Syed Mazhar Hussain and sixteen representatives of workers’ unions inked the MoU.

The PTCL workers had been demanding an increase in salary in accordance with the 2005 Basic Pay Scale (BPS), house rent and transportation allowance, regularisation of services of all contract employees, reinstatement of dismissed employees and withdrawal of Unified Pay Scale (UPS).

The UPS was withdrawn the very next day after the strike began. However, despite the withdrawal of the new pay scale, which was the main bone of contention between the management and workers, the employees continued the stoppage, saying it would continue until all demands were accepted.

In that regard, a high-level committee was constituted by Prime Minister Yousuf Raza Gilani with the task to look into the matter and submit a report in two days. The committee, comprising Federal Finance Minister Naveed Qamar, IT and Telecom Minister Qamar Zaman Qaira, Labour Minister Khursheed Shah and Water and Power Minister Raja Pervaiz Ashraf, constituted a sub-committee consisting of various secretaries. However, both committees did not give any positive results.

A PTCL union representative, Ziauddin, said the government’s committee was of no benefit as they did not take the matter seriously and there was no positive outcome. He said the failure of the government as a negotiator between the management and workers forced both parties to solve the issues by themselves instead of depending on the state.

The management and workers’ unions have agreed to certain terms and conditions. The management has agreed to confirm the employees in NCPG (New Compensation Pay Group) under company policy, EOBI pension will be provided as per EOBI laws for NCPG employees, superannuation age of employees will be 60 years, disciplinary proceedings will be in accordance with PTCL regulations and labour laws, death compensation will be given to NCPG employees as per prevailing policy or as amended from time to time for all non-management employees and gratuity equal to last month’s basic pay per year of service will be given.

The employees will be entitled to overtime at double the ordinary rate of basic pay and cost of living allowance, house-building and motorcycle advances, burial charges, marriage grant and education grant in accordance with prevailing company regulations and policies. They will get annual bonus whenever approved by the PTCL board of directors which will be on a par with other non-management staff.

The employees can also apply for allotment of PTCL quarters and allotments will be made in accordance with the entitlement, seniority and company rules.

In the negotiations, the worker representatives agreed to call off the strike immediately and assured the management of full cooperation. They agreed to refrain from entering into any activities not covered under labour laws and would prove their loyalty to the company. Union leaders assured the management that the employees would go to their duties and work efficiently.